Home News Stock to Watch: Methode Electronics (NYSE: MEI)

Stock to Watch: Methode Electronics (NYSE: MEI)

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Methode Electronics is part of the technology sector and computer hardware industry. Methode Electronics Inc is a part of the electronic components industry. Its main products primarily include components and subsystem devices.

Previous Intraday Trading Performance:

The MEI stock showed a previous change of 2.55% with an open at 26.48 and a close of 27.00. It reached an intraday high of 27.07 and a low of 26.34.

SeekingAlpha:  Methode Electronics, Inc. (MEI) CEO Donald Duda on Q3 2019 Results – Earnings Call Transcript

Liquidity:

The stock has a market cap of $998.6m with 37.0m shares outstanding, of which the float is 34.5m shares. Trading volume reached 165,571 shares compared to its average volume of 188,323 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, Methode Electronics shares returned 5.59% and in the past 30 trading days it returned -7.41%. Over three months, it changed -11.30%. In one year it has changed -35.01% and within that year its 52-week high was 45.45 and its 52-week low was 20.99. MEI stock is 28.63% above its 52 Week Low.

Our calculations show a 200 day moving average of 29.12 and a 50 day moving average of 28.16. Currently MEI stock is trading -7.27% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

SeekingAlpha:  Methode Electronics, Inc. 2019 Q3 – Results – Earnings Call Slides

Earnings:

The last annual fiscal EPS for the company was reported at 1.52 that ended on 30th of April 2018, which according to the previous close, that is a PE of 17.76. Based on 2 analyst estimates, the consensus EPS for the next quarter is 0.57. The TTM EPS is 3.12, which comes to a TTM PE of 8.65. Historically, the PE high was 34.70 and the PE low was 8.65. MEI stock has set a new PE low record!

Below was the last reported quarterly diluted earnings per share:

Jan19 (Reported on 03/07/2019): 0.82
Oct18 (Reported on 12/06/2018): 0.39
Jul18 (Reported on 08/30/2018): 0.63
Apr18 (Reported on 06/21/2018): 0.98
Jan18 (Reported on 03/01/2018): -0.65

The dividend per share is currently 0.44, which is a dividend yield of 1.63%. Also, the payout ratio is 14.10%, therefore the dividend is safe according to our calculations.

Indicators to Watch:

Short-interest was 598,589, which was 1.62% of shares outstanding. The short-interest ratio or days-to-cover ratio was 3.35. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 1.46.

SeekingAlpha:  Methode Electronics beats by $0.30, misses on revenue

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 17.15%, return on assets is 10.02%, profit margin is 9.40%, price-to-sales is 1.33 and price-to-book is 1.44.

Company Scores:

All scores are out of six:
 6  :Valuation Score
 3  :Past Performance Score
 4  :Financial Strength Score
 2  :Future Growth Score
 4  :Dividend Score
 3  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.